By Paul A. Harris
Portland, Ore., Jan. 24 – Starwood Property Trust, Inc. priced an upsized $500 million issue of non-callable three-year senior notes (Ba3/BB-) at par to yield 3 5/8% in a Wednesday drive-by, according to a market source.
The issue size was increased from $400 million.
The yield printed at the tight end of the 3 5/8% to 3¾% yield talk.
J.P. Morgan Securities LLC and Credit Suisse Securities (USA) LLC were the bookrunners.
The Greenwich, Conn.-based commercial mortgage real estate investment trust plans to use the proceeds to pay the cash amounts due on its 4.55% convertible senior notes due 2018 at maturity or upon conversion, and to use any remaining net proceeds to repay a portion of the amount outstanding under its existing repurchase agreements.
The convertible senior notes due 2018 mature on March 1, 2018. As of Sept. 30, 2017 approximately $370 million remained outstanding.
| Issuer: | Starwood Property Trust, Inc.
|
| Amount: | $500 million, increased from $400 million
|
| Maturity: | Feb. 1, 2021
|
| Securities: | Senior notes
|
| Bookrunners: | J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC
|
| Coupon: | 3 5/8%
|
| Price: | Par
|
| Yield: | 3 5/8%
|
| Spread: | 143 bps
|
| Call protection: | Non-callable
|
| Trade date: | Jan. 24
|
| Settlement date: | Jan. 29
|
| Ratings: | Moody's: Ba3
|
| S&P: BB-
|
| Distribution: | Rule 144A with registration rights
|
| Price talk: | 3 5/8% to 3¾%
|
| Marketing: | Quick to market
|
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